How to Repair Bad Credit

The only way to repair bad credit over time is through good credit practices—credit practices that show an ability on your part to manage and pay back debt responsibly.

Before you begin the process of repairing your credit, it’s important to understand that credit repair takes a matter of years, not weeks or months. Most negative entries remain on your credit report for seven years. Some bankruptcies remain for 10, and unpaid tax liens remain for 15.

That being said, with patience and diligence, you will be able to repair your credit. And in doing so you’ll develop the responsible financial habits needed to maintain the good credit you’ve worked so hard to build.

Good credit practice requires discipline, but the underlying ideas are simple and easy to follow. They can be broken down into five basic rules:

If you’re in default on your debts and are unable to catch up or make at least the minimum payments due on your outstanding balances, you’ll need to address your immediate financial situation first before beginning the credit repair process (see How to Get Credit Help). You must be in a position to get current and stay current on your bills before you can realistically begin to repair your credit.